China's Largest Dairy Baby Formula Revives Hong Kong Listing Plan
Luan Li
DATE:  Jul 04 2019
/ SOURCE:  yicai
China's Largest Dairy Baby Formula Revives Hong Kong Listing Plan China's Largest Dairy Baby Formula Revives Hong Kong Listing Plan

(Yicai Global) July 4 -- China's largest infant formula company Heilongjiang Feihe Dairy, which was listed twice in the United States, is making a second attempt at listing in Hong Kong in a deal that could raise up to USD1 billion.

The Harbin province-based firm published a pre-disclosure file via the Hong Kong Stock Exchange yesterday, without disclosing how much it plans to raise or how it plans to spend the proceeds.

Analysts predicted in March 2019 that Feihe, which initially sought to float shares in Hong Kong two years ago with backing from China Merchants Securities, may look to raise USD1 billion in its latest attempt. The company listed on the Nasdaq in 2005 before switching to the New York Stock Exchange and going private in 2013.

It had a 7.3 percent share of the Chinese infant formula market last year, leading domestic and international brands, according to a Frost & Sullivan report.

Feihe earned CNY771 million (USD112 million) over the first quarter of this year on revenue of CNY2.8 billion (USD408 million). It pocketed CNY2.2 billion throughout last year, up 93 percent as income climbed 76 percent to CNY10.4 billion, with the majority of revenue coming from milk powder sales.

It had partnerships with 1,123 distributors and 610 retailers as of the end of March, with its products shipping to around 92,000 stores. Nearly 70 percent of all sales come via distributors.

Editor: Zhang Yushuo

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Keywords:   Feihe Dairy,IPO